Large corporations play crucial role in local startup survival

VOV.VN - A number of major corporations have exerted a significant impact on domestic startups as they get to enjoy a number of benefits when investing in new firms, said Tran Xuan Dich, deputy head of the Market and Business Development Department under the Ministry of Science and Technology.

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Recent years have seen Vietnam’s innovative start-up ecosystem witness dynamic growth and is now considered as the leading eco-system in all of Southeast Asia.

According to statistics, the country’s startup ecosystem has seen 38 private investment deals, of which 28 deals have been made into startups between 2018 and the first half of last year.

The involvement of major businesses and corporations to support innovative startups has become a popular trend globally, especially in countries with developed start-up ecosystem such as the United States, the Republic of Korea, and Singapore.

Startup firms will therefore benefit from the support of large corporations in terms of capital and corporate governance experience, while major companies will receive potential business models that are expected to meet the requirements of customers through fresh technology platforms developed by innovative startups, according to Dich.

Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), states that large enterprises have played a significant role in assisting with the training of human resources, noting that these enterprises should move to create startup spaces in which for new projects to experiment.

Loc also underlines the importance of new firms receiving support from large businesses by pouring investment into the country's ecosystem due to a limitation of state capital.

Moreover, the majority of Vietnamese startups do not enjoy solid financial support, Loc noted, therefore making it difficult for these firms to survive amid fierce competition.

The VCCI representative also emphasises the significant social responsibility of major business groups and investment funds in promoting the startup ecosystem and training future generations of entrepreneurs, as well as making contributions to the national economic development.

VOV

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